Block Announces Global Layoff Cutting 40% of Workforce, OpenAI Closes Massive $110B Funding Round at $730B Valuation, and South Korea Reverses Course Granting Google Permission to Export Geographic Data for Google Maps.
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Show Notes
Netflix Bows Out of WBD Bidding War
Netflix has withdrawn its bid to acquire a portion of Warner Bros. Discovery (WBD) assets after WBD’s board determined a revised, all-cash offer of $31 per share from Paramount Skydance for the entire company to be superior. Netflix’s final offer was $27.75 per share, and the company declined to match the higher Paramount bid, stating the deal was no longer financially attractive and was a “nice to have,” not a “must have.” The decision ends the bidding war, with WBD CEO David Zaslav supporting the potential Paramount Skydance-WBD combination, and Netflix’s stock rising 10% following its withdrawal announcement.
Block Cuts 40% of Workforce
Financial services company Block is cutting over 4,000 employees, 40% of its workforce, in a massive global layoff. Block claims the move is proactive, efficiency-driven, and aims for smaller teams and AI integration, echoing Elon Musk’s cuts at X. The reduction boosted Block’s stock but sparks debate over whether AI or financial motives are the true cause, following a trend of large tech layoffs. Affected U.S. staff will receive 20 weeks of base salary, vested equity, health care, and a $5,000 transition stipend.
OpenAI Raises $110 Billion
OpenAI has secured a massive $110 billion private funding round, with $50 billion from Amazon and $30 billion each from Nvidia and SoftBank, at a $730 billion pre-money valuation. This funding will be used to scale infrastructure for global AI use and involves significant infrastructure partnerships including a $100 billion expansion of its AWS commitment, developing a “stateful runtime environment” on Amazon’s Bedrock, and a commitment to utilize 5GW of total capacity on Nvidia’s Vera Rubin systems.
Google Cleared to Export Maps Data to South Korea
Google has been granted permission by South Korea to export geographic data, a reversal of the country’s historical restriction due to national security concerns related to North Korea. This approval allows Google to offer real-time navigation and GPS services, but is contingent on meeting “strict security requirements,” such as restricting the display of military sites. The lack of data sharing was previously a trade issue with the U.S., but critics in South Korea now worry that Google may monopolize the market and harm local competitors like Naver.
Anthropic Resists Pentagon AI Demands
Anthropic CEO Dario Amodei is refusing the Department of Defense’s demand for unrestricted use of its AI models, despite threats from Defense Secretary Pete Hegseth, including labeling the company a “supply chain risk.” Anthropic is seeking assurances that its AI will not be used for fully autonomous weapons or mass domestic surveillance, while the DOD, through Chief Pentagon spokesman Sean Parnell, insists on access for “all lawful purposes” and maintains that no company will dictate its operational terms. The dispute is ongoing, as Anthropic’s major rivals, including OpenAI, Google, and xAI, have already agreed to the DOD’s unrestricted use policy.
Google Employees Demand AI “Red Lines”
In related news, over 100 Google employees demanded “red lines” to prevent their Gemini AI from being used for mass surveillance or autonomous weapons, mirroring Anthropic’s contract concerns. This activism, joined by OpenAI staff, criticized the Pentagon’s negotiation tactics. Google DeepMind’s Jeff Dean backed the employees, condemning AI for mass surveillance as unconstitutional.
Meta Signs Multi-Billion AI Chip Deal with Google
Reuters reports that Meta has signed a multi-billion-dollar, multi-year deal with Google to rent Google’s Tensor Processing Units (TPUs) for developing new AI models. This move is part of Meta’s substantial investment in AI infrastructure, which also includes committing to purchase up to $60 billion in AI chips from AMD and signing a separate deal with Nvidia for its chips. The deal helps Google compete with Nvidia by promoting its TPUs as a viable alternative and boosts Google’s cloud revenue.
Experts Warn of Low-Quality AI Videos Targeting Kids
Experts are concerned about the negative developmental effects of mass-produced, low-quality, A.I.-generated videos targeting young children on YouTube, including Shorts and Kids. These videos are cognitively overwhelming, featuring warped visuals, incoherent narratives, and misinformation, lacking the structured repetition needed for learning. The high volume of this confusing content, created for profit with minimal YouTube oversight, may impede children’s ability to discern fantasy from reality and displaces beneficial activities, making content identification largely a parental responsibility.
Spotify Launches Weekly Audiobook Charts
Spotify has launched new weekly Audiobook Charts for the U.S. and U.K., expanding its investment in the audiobook space. These charts, similar to their Music and Podcast Charts, rank top audiobooks overall and by genre based on listening engagement. Accessible in the audiobooks hub, the feature aims to help listeners discover new titles and offer authors and publishers new ways to reach audiences. This follows previous investments in the format, including “Page Match” and “Audiobook Recaps,” and a recent venture into physical book sales with Bookshop.org.
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